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Due to the virtual nature of online gambling, it is hard for players to verify the authenticity of sites they are using.[80] Unlike in physical casinos, randomness and deck shuffling cannot be verified by visual means unless the casino is provably fair. Players interact with other players through GUIs, which connect to the gambling site's server in a non-transparent manner.[81] Players' attitudes towards sites plays an important role in online purchases and customer loyalty. Lack of trust in payment systems and security are primary reasons for avoiding online gambling.[82] In an online survey of 10,838 online casino and poker players from over 96 countries, respondents reported a high level of mistrust of online gambling. 91.5% believed that reputable third party reports on randomness and payouts were important to gain their trust.[80] However, contrasting research shows that seals-of-approval granted by these third parties does not have a strong influence on purchasing behavior, nor are customers usually aware of their existence.[83]

The United States Court of Appeals for the Fifth Circuit ruled[43] in November 2002 that the Federal Wire Act prohibits electronic transmission of information for sports betting across telecommunications lines but affirmed a lower court ruling[44] that the Wire Act "'in plain language' does not prohibit Internet gambling on a game of chance." But the federal Department of Justice continues, publicly, to take the position that the Wire Act covers all forms of gambling.[45]
On November 22, 2010, the New Jersey state Senate became the first such US body to pass a bill (S490) expressly legalizing certain forms of online gambling. The bill was passed with a 29–5 majority. The bill allows bets to be taken by in-State companies on poker games, casino games and slots but excludes sports betting, although it allows for the latter to be proposed, voted on and potentially regulated separately in due course.[61] However, a Fairleigh Dickinson University PublicMind poll in April 2009 showed only 26% of New Jersey voters approved of online sports-betting.[62] On a national level, two-thirds (67%) of voters polled by PublicMind in March 2010 opposed changing the law to allow online betting. Men were more likely than women (29–14%) and liberals more likely than conservatives (27–18%) to approve of changing the law to allow online betting.[63] In May 2012, FDU's PublicMind conducted a follow up study which asked voters if they favored or opposed online gaming/gambling and "allowing New Jersey casinos to run betting games online, over the Internet." The results showed that (31%) of voters favored while a sizable majority (58%) opposed the idea. Peter Woolley, director of the PublicMind, commented on the results: "Online gambling may be a good bet for new state revenue, but lots of voters don't think it's a good bet for New Jersey households."[64]
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While the criminal code of Canada does not prohibit online gambling, it does prohibit any type of gambling at an establishment not owned or licensed by a provincial government. Not withstanding this fact, there are an estimated 1,200 to 1,400 offshore websites that make casino type games and other gambling activities available to Canadians.[18] For online gambling operations within Canada's borders, the Canadian authorities are willing to prosecute, but as of this date, have only done so once, when British Columbia prosecuted Starnet Communications International ("SCI"), a Delaware corporation, run by residents of Vancouver, where one of the company's servers was located. The court found that SCI had sufficient contact with Canada to be prosecuted under its criminal code. SCI was fined $100,000 and forfeited nearly $4 million in profits. It has since moved its operations overseas.[19]

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On March 5, 2009, France proposed new laws to regulate and tax Internet gambling. Budget minister Eric Woerth stated the French gambling market would expand to adapt to "Internet reality." He further stated "Rather than banning 25,000 websites, we'd rather give licenses to those who will respect public and social order."[25] Betting exchanges, however, will remain illegal under the new plans.
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On April 15, 2011, in U. S. v. Scheinberg et al. (10 Cr. 336), three online poker companies were indicted for violating U.S. laws that prohibit the acceptance of any financial instrument in connection with unlawful Internet gambling,[65][66] that is, Internet gambling that involves a "bet or wager" that is illegal under the laws of the state where the bet is made.[67] The indictment alleges that the companies used fraudulent methods to evade this law, for example, by disguising online gambling payments as purchases of merchandise, and by investing money in a local bank in return for the bank's willingness to process online poker transactions.[65] The companies argue that poker is a game of skill rather than a game of chance, and therefore, online poker is not unlawful Internet gambling. There are other legal problems with the government's case, and the indictments did not mention the Wire Act.[68] On July 31, 2012, it was announced that two of the three companies indicted for money laundering and forfeiture settled with the Manhattan U.S. Attorney for $731 million without legally admitting guilt. The government also asked the judge to approve a settlement with the third defendant, Absolute Poker.[69] In March 2016, PokerStars spokesman Eric Hollreiser said his company finally had established an important beachhead in the U.S. market by being able to operate legally in New Jersey.[70]

In April 2004 Google and Yahoo!, the two largest Internet search engines, announced that they were removing online gambling advertising from their sites. The move followed a United States Department of Justice announcement that, in what some say is a contradiction of the Appeals Court ruling, the Wire Act relating to telephone betting applies to all forms of Internet gambling, and that any advertising of such gambling "may" be deemed as aiding and abetting. Critics of the Justice Department's move say that it has no legal basis for pressuring companies to remove advertisements and that the advertisements are protected by the First Amendment.[46] In April 2005, Yahoo! has instigated a restrictive policy about gambling ads.[47]


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